Q1. Which of the following best describes the process of de-industrialisation in India under British rule?
British Economic Policies and Their Impact: RAS Prelims MCQs
28 RAS Prelims MCQs on British economic policies and their impact cover land revenue settlements, the drain of wealth, de-industrialisation, railway policy, famines and peasant uprisings. The questions ask about the Permanent Settlement, the Ryotwari system, the Tinkathia system, the Santhal rebellion and the nationalist critique of colonial economics.
Practice questions based on the RPSC RAS Prelims syllabus. They follow the exam pattern but are not past-paper questions.
Showing 1–10 of 28 questions
Q2. Consider the following statements regarding the Drain of Wealth theory:
I. It was first systematically formulated by Dadabhai Naoroji in his book Poverty and Un-British Rule in India.
II. A major component of the drain was the Home Charges paid to the British government.
III. The drain facilitated capital formation and industrialisation within India.
Which of the above statement(s) is/are correct?
I. It was first systematically formulated by Dadabhai Naoroji in his book Poverty and Un-British Rule in India.
II. A major component of the drain was the Home Charges paid to the British government.
III. The drain facilitated capital formation and industrialisation within India.
Which of the above statement(s) is/are correct?
Explanation
The Drain of Wealth theory highlights how India’s surplus was transferred to Britain without equivalent returns. Dadabhai Naoroji pioneered this concept, identifying components like salaries of British officials and Home Charges. While the theory explains the capital extraction from India, it correctly identifies that this process hindered rather than facilitated domestic industrialisation by depleting the country’s essential financial resources.
Q3. The Permanent Settlement of land revenue was introduced in Bengal in the year 1793 by which Governor-General?
Explanation
The Permanent Settlement of land revenue was introduced in 1793 by Lord Cornwallis to create a stable revenue source for the East India Company. This system granted zamindars permanent hereditary ownership rights over land, provided they paid a fixed revenue to the state. It aimed to establish a loyal class of supporters while ensuring a predictable financial income.
Q4. Match List I with List II and select the correct answer:
| Land Revenue System | Region/Associated Person |
|---|---|
| A. Permanent Settlement | i. Holt Mackenzie |
| B. Ryotwari System | ii. Central Provinces |
| C. Mahalwari System | iii. Thomas Munro |
| D. Malguzari System | iv. Bengal and Bihar |
Explanation
Different land revenue systems were implemented across colonial India. The Permanent Settlement began in Bengal and Bihar under Lord Cornwallis. Thomas Munro introduced the Ryotwari system in Madras to deal directly with peasants. Holt Mackenzie formulated the Mahalwari system for northern regions, while the Malguzari system was specifically applied in the Central Provinces to manage agrarian tax collections.
Q5. Based on the given assertion and reason, select the correct option:
Assertion (A): The introduction of railways in India by the British was primarily aimed at fostering the internal economic development of the country.
Reason (R): Railways facilitated the rapid movement of raw materials from the hinterland to the ports for export to Britain.
Assertion (A): The introduction of railways in India by the British was primarily aimed at fostering the internal economic development of the country.
Reason (R): Railways facilitated the rapid movement of raw materials from the hinterland to the ports for export to Britain.
Explanation
The assertion that British railways focused on internal economic development is incorrect. Instead, the railway network was strategically designed to benefit imperial interests. By linking raw material hubs to major ports, the system ensured the rapid export of primary goods to Britain. This infrastructure also allowed the British to transport troops quickly to maintain control over the territory.
Q6. Match List I with List II and select the correct answer:
| Term related to financial exploitation | Description |
|---|---|
| A. Guaranteed Interest | i. Lower import duties for British goods entering India |
| B. Imperial Preference | ii. Early trading firms managing foreign capital in India |
| C. Home Charges | iii. Expenses of the Secretary of State’s office in London |
| D. Agency Houses | iv. Fixed minimum return provided to British railway investors |
Explanation
Guaranteed interest was the fixed minimum return given to British railway investors, Imperial Preference was lower import duties for British goods, Home Charges were the expenses in London and Agency Houses were early trading firms. This gives A-iv, B-i, C-iii, D-ii.
Q7. Identify the correct statement regarding the early Indian nationalist economic critique.
Explanation
Early nationalist economists argued that British rule drained India and that the state must protect and develop Indian industry. They did not accept free trade or blame cultural backwardness.
Q8. Consider the following events related to the economic drain and nationalist response. Which of the following represents the correct chronological order?
I. Publication of ‘Poverty and Un-British Rule in India’
II. Formation of the Welby Commission on Indian Expenditure
III. First public articulation of the Drain Theory by Naoroji
IV. Adoption of the Swadeshi resolution by the Indian National Congress
Which of the following orders is correct?
I. Publication of ‘Poverty and Un-British Rule in India’
II. Formation of the Welby Commission on Indian Expenditure
III. First public articulation of the Drain Theory by Naoroji
IV. Adoption of the Swadeshi resolution by the Indian National Congress
Which of the following orders is correct?
Explanation
Naoroji first stated the Drain Theory in 1867, the Welby Commission was formed in 1895, his Poverty and Un-British Rule in India came out in 1901 and the Congress adopted the Swadeshi resolution in 1905. The order is III, II, I, IV.
Q9. De-urbanisation was a visible consequence of de-industrialisation. Which of the following traditional manufacturing centres faced severe decline during this period?
Explanation
De-industrialisation hit traditional manufacturing centres such as Murshidabad and Dhaka, which declined sharply as cheap British goods came in.
Q10. Consider the following statements about the features of the Drain of Wealth:
I. The drain was essentially the unilateral transfer of social surplus from India to Britain.
II. It included both an official administrative drain and a private commercial drain.
III. It facilitated an equal transfer of modern technology and management practices to India.
Which of the above statement(s) is/are correct?
I. The drain was essentially the unilateral transfer of social surplus from India to Britain.
II. It included both an official administrative drain and a private commercial drain.
III. It facilitated an equal transfer of modern technology and management practices to India.
Which of the above statement(s) is/are correct?
Explanation
The drain was a one-way transfer of surplus from India to Britain, and it included an official drain and a private commercial drain. It did not bring an equal transfer of technology, so III is wrong.Answer key for these questions
| Q | Correct answer |
|---|---|
| 1 | (b) The systematic destruction of traditional Indian handicrafts and artisan industries |
| 2 | (a) I and II only |
| 3 | (c) Lord Cornwallis |
| 4 | (a) A-iv, B-iii, C-i, D-ii |
| 5 | (d) A is false but R is true. |
| 6 | (a) A-iv, B-i, C-iii, D-ii |
| 7 | (d) It demanded the active use of state power to protect and develop Indian industries. |
| 8 | (b) III, II, I, IV |
| 9 | (b) Murshidabad and Dhaka |
| 10 | (a) I and II only |
Key facts from British Economic Policies and Their Impact
- Lord Cornwallis introduced the Permanent Settlement in Bengal in 1793.
- The Ryotwari settlement aimed at peasant proprietors but high revenue and debt pushed land to moneylenders.
- The Tinkathia system forced Champaran peasants to grow indigo on a part of their land.
- The Santhal Rebellion (1855-56) arose from oppression and dispossession by zamindars and moneylenders.
- De-industrialisation ruined centres such as Murshidabad and Dhaka.
- Naoroji stated the Drain Theory in 1867; the Welby Commission sat in 1895, and Poverty and Un-British Rule in India appeared in 1901.
Frequently asked questions
How many RAS Prelims practice MCQs are there on British Economic Policies and Their Impact?
This page has 28 practice MCQs on British Economic Policies and Their Impact (Modern Indian History). Each has the correct answer, and most have an explanation.
Who introduced the Permanent Settlement?
Lord Cornwallis, in Bengal in 1793. It fixed the land revenue permanently and made zamindars the owners of land, which gave the British a steady income but put heavy pressure on the actual cultivators.
What was the Tinkathia system?
A system in Champaran, Bihar, under which peasants had to grow indigo on three-twentieths (3/20) of their land for European planters. Its exploitation led to Gandhi’s first Satyagraha in India in 1917.
What was the Drain of Wealth?
The one-way transfer of India’s surplus to Britain through home charges, salaries, profits and interest, without an equal return. Dadabhai Naoroji first stated the theory in 1867, and it became a main plank of the nationalist economic critique.